The Globe and Mail reports in its Monday, Feb. 24, edition that since U.S. President Donald Trump proposed sweeping tariffs on Canada, many Canadian software entrepreneurs have assumed they would be exempt. The Globe's Sean Silcoff writes that lawyers from Dentons Canada, however, caution that this is uncertain. They note the proposed 25-per-cent tariff on goods imported from Canada only states the penalty will cover "articles that are products of Canada" imported to the United States. Dentons wrote it will only be clear once U.S. Customs and Border Protection issues a notice setting forth what exactly is covered by President Donald Trump's executive order, expected by early March. Dentons's Andrea Johnson says: "People in the software sector don't spend much time thinking about tariffs, but that's changing. ... It's entirely possible this 25-per-cent tariff, when it comes into effect, will apply to software. We have to wait for details." Cassidy Levy Kent's Chris Cochlin says, "Digitally transmitted software doesn't cross ports of entry like physical goods and would require a massive regulatory overhaul to operationalize," including tracking transmissions over telecommunications networks.
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